XRP, formerly known as Ripple, faced a decline of over 9% on Wednesday as traders moved to secure recent gains following a ten-week high. On Tuesday, XRP/USD rose to a high of $0.5614, but today’s sell-off sent the token to a bottom at $0.5009. The decline comes as bulls were unable to maintain yesterday’s breakout of a key resistance level at $0.5490. This shift in sentiment occurred as the relative strength index (RSI) retreated to a floor of its own at 52.00, and at the time of writing, the index is tracking marginally above this point at 52.11, with a ceiling of 58.00 being the possible target for bulls. In the event that it reaches this level, it is likely that XRP will once again be trading above $0.5500.
This decline in XRP’s price comes amid overall market sentiment remaining bearish, following last week’s actions by the US Securities and Exchange Commission (SEC). The SEC filed a lawsuit against Ripple in December 2020, alleging that XRP was an unregistered security, which led to a decline in its price. The SEC’s actions against Ripple have resulted in other cryptocurrencies facing increased scrutiny from regulators.
Cardano (ADA) was also another notable token to move into the red on Wednesday, with the price remaining close to a key support point. Following a high of $0.2895 on Tuesday, ADA/USD dropped to an intraday low of $0.2699 today. As a result of the move, Cardano remained near its long-term price floor at $0.2700, which was broken over the weekend. Saturday’s drop sent ADA to its weakest point since January, but this decline was short-lived, with bulls sweeping in to buy the dip.
Despite rebounding in recent days, the RSI continues to track below 30.00, which is a sign of current bearish pressure. Bulls are likely looking at the $0.3000 level as a short-term target, but there will likely be a high level of volatility preventing this point from being hit.
Source: Bitcoin.com
